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GM starts Malaysian joint-venture

GM has announced plans to start a joint venture with Malaysia's DRB-Hicom to sell a range of Chevrolets in the country and possibly set-up a manufacturing base for cars and parts for sale in southeast Asian region. Following the breakdown in talks with state-owned Proton earlier in the year, GM then turned to DRB-Hicom to help take advantage of the country's cheap labor and free trade agreements.

DRB-Hicom holds a 51% stake in the joint-venture with GM and plans to start operations by as early as October. By manufacturing in Malaysia, GM will be able to export cars and auto supplies to other Asian manufacturers based in Thailand, Japan and Indonesia with barely any taxes. No surprise that other foreign makes such as Volkswagen and PSA Peugeot-Citroen are interested in gaining a foothold in the country.

GM has had some limited success selling its products in Malaysia, where most foreign cars are heavily taxed. It previously sold Holden's older-generation VY Commodore in small numbers but ended this after a single model year due to poor sales. Despite this latest announcement, GM insists that it's still open to forming an alliance with Proton, revealing that there are "significant opportunities" in it.